Speaking at the recent Botswana Stock Exchange Limited (BSEL) opening bell ceremony in Gaborone, businessman Charles Tibone has bemoaned that the economy is hunting for Foreign Direct Investment (FDI) and shunning local entrepreneurs.
He has therefore implored Government and the public in general to embrace growth of local businesses.“The core of your economy is your people and our businesses (local businesses) should be seen as assets in the economy,” Tibone said. Tibone said great initiatives have crumbled, due to market resistance which he views as the main challenge for most entrepreneurs.
Citing his pharmaceutical company which closed shop after two years of operation in the early 90s, Tibone said failure to get local support before accessing the export market, lead to the closure of the business.
Tibone said lack of local support is crippling many businesses, adding that once a business is funded or initiated, the owners should work hard.“You are on your own,” said Tibone emphasizing that most local entrepreneurs have had more failures than success, due to the limited success. Tibone’s sentiments are also shared by Botswana Export Manufacturers Association (BEMA), Nkosi Mwaba, who is on record calling for the local market to offer unwavering support to local enterprises.
“We need to unapologetically support, protect and develop local industries before rushing to conform to often unrealistic regional trade expectations,” Mwaba said. Mwaba further said free trade and an open border system is fair if aligned to the healthy development and growth of Botswana companies.
Meanwhile government has recently announced that it is enacting a Business Facilitation Law which will enhance the country’s international standing as an investment destination of choice. Last year, Botswana One Stop Service Shop Centre (BOSSC) was launched to shorten the turnaround time for foreign businesses seeking various government authorizations, business registration, issuance of work and residents permits at no cost to ensure quality service standards to investors.
Botswana Railways hit by fuel theft
Botswana Railways lost fuel business due to continuous incidents of stolen fuel from the tanks and delays mainly at Mafikeng, in the north Western side of South Africa.
Botswana Railways Chief Executive Officer Leonard Makwinja said, during 2017/2018, their biggest failure was in this area. “Our biggest failure in this aspect was on imports, transporting of fuel from South Africa proved to be a challenge.
There have been incidents of fuel loss on tankers, sometimes a delay in Mafikeng when trains changed and when it arrives in Botswana the tank would be half empty, “said Makwinja. He said this was worsened by allegations that road transportation was cheaper. Currently, they have employed a fuel consultant to look into the whole fuel transportation. “We believe a solution will be found soon.”
The BR Chief explained they heavily rely on the relationship with Transnet to successfully execute its freight mandate. Most of the imports through rail come from South Africa and the main export through rail which is salt and soda ash is transported from Botash to Mafikeng. “Going onwards we have to depend on Transnet for connections to the respective destinations. Our strategic plan going forward is to improve our services to the oil companies so that we are more reliable, timely and profitable.”
During the period, Makwinja said they had to focus on cost containment. The main cost drivers are staff cost, fuel and maintenance of the locomotives. In his statement on Botswana Railways 2018 annual report, Makwinja said the organization’s performance was subdued due to lack of capacity to meet the demand. “In terms of tonnage, our target was 2 million tons but we only achieved 1, 5 million tons. This adverse variance can be attributed to a number of factors including lack of sufficient locomotives and practicing conservative business initiatives and marketing,” he said.
Calls to improve crop yields with technology
Greenhouse Technologies managing director, Amanda Masire has urged entrepreneurs to venture into agriculture as it is a lucrative business and more beneficial to the national economic development, despite climate change challenges.
Speaking to Business Trends, Masire said there is a need for more training and knowledge on modern agriculture technologies for the country to have sustainable food production. “I am passionate about agriculture and food production. I want to help my country to produce food for itself and reduce dependency on imports. I have learnt that despite all the challenges of climate change, we can still produce our own food through the use of modern technologies,” said Masire.
Masire is an agri-business developer, specializing in horticulture, beekeeping and fish farming. She currently operates Greenhouse Farmers Academy offering training and mentorship on horticulture farming. “Agriculture is the most lucrative business that young people should be looking into. Currently, we depend much on South Africa. We should rise up and develop the sector because as Batswana we have rich land that we are not utilising.” Her services include horticulture starter kit, which includes business plans, lessons, fertilisers and all equipments necessary for a particular horticulture project.
She is currently working with the Ministry of Agriculture Development and Food Security to develop the ISPAAD Program. She said government would embrace modern farming technologies to improve food production. “Most Batswana have lands which they are currently not ploughing because of climate change conditions while the government gives out fertilizers and seeds every year to subsistence farmers yet there is no yield. I have come up with solutions, which include testing soil and supplying lime treatment to reduce acidity. This will help improve crop yield when adopted with other technologies,” she said.
Speaking during Stanbic Lionness Lean In Africa, Masire said with the challenges in the agriculture sector, Batswana should stop looking much into the problems and getting discouraged but should rather think of solutions. “Government is trying but we individuals also need to be innovative and assist government in improving food security. Young people should take opportunity of the agri-business market and reduce unemployment,” said Masire.
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